Investopedia defines SPDAs as the following;
Consider The Key Advantages of SPDAs;
- SAFETY OF PRINCIPAL – Money that you invest is guaranteed by the company issuing the annuity, as well as is protected by your states Insurance Guaranty Funds.
- HIGH RATE OF INTEREST – Check the rates on Fixed Annuities. Annuity rates are nearly ALWAYS higher than other conservative options (be sure to talk to our agent about terms specific to annuities you are interested in.
- TAX-DEFERRED GROWTH – All interest accumulates and compounds on annuities tax-deferred, meaning that you do not pay taxes until you withdraw the money later.
- PARTIAL LIQUIDITY – Very often, many annuities offer you access to a portion of your funds each year, even if the annuity has not matured. Many other investments do not make such an offer.
- ANNUITIES PASS TO YOUR BENEFICIARIES WITHOUT ENTERING PROBATE – Funds that you sock away in annuities avoid probate allowing your beneficiaries immediate access to your money, if the worst should come to pass.